I heard this on K-Love Alan Greenspan said the economy will slow down in 2010

not sure where to find that articale it will taken from but I know I heard it and I trust Mr. Greenspan

 

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I didn't know it was still moving...or even alive. Maybe Alan's been asleep for a few years.
Guy~

 

he meant that it was going to slow down even more then in 2009...meaning it's going to get worse then it already is

what would this do to PM values? would they drop in value or would they top up in value?

 

Well, historically metals have increased when markets have fallen, as people try to reinvest what they have in hard assets versus market assets. Of course, if it gets bad enough, like the great depression, people will stop buying metal and start buying food, because gold and silver don't taste all that good when you're hungry.

In my opinion, I don't think next year will get worse. In my line of business, China's economy keeps us in business (coast to coast intermodal rail freight) and lately the economies of the far east have picked up somewhat, which usually means ours isn't far behind.
Guy~

 

I see what your saying but why did PM's fall like a rock last year?
maybe I'm wrong in thinking this but I think the stock market crashing like it did made PM's do the same (lack of demand meant lack of price)


I really wish I knew alot more about the relationship between the stock market, the economy, and PM's then I do.

 

The perception that I have ( and like everyone else, I don't have a crystal ball) is that there are not as many "gold bugs" in the world as might be thought when one is on coin or bullion or mining forums. Generally when the stock market goes down like today, many expect gold to go up proportionally, and I think that would occur if the world was in a panic mode, which it doesn't seem to be, more a wait and see mode. Most "retail" money is on the sideline, waiting to see which way to go, and that is true for stocks as well as precious metals. Over the last 3 months, General Electric is still up close to 40% compared to gold at about 10% or so. even the banks ETF with the big drop today is still about 25%. In general being in stocks was the way to go the last few months if you are trying to make money. At the same time the inflation based funds are doing very poorly, there is little.

Alan may have been talking about the things economists treasure such as jobless level, income per family levels( dropped badly), the drop in auto sales after the clunker rebate ended, and the credit card debt ratio and the upcoming balloon in the business related realty market. There are a lot of scary things ahead, but I do not expect gold to out do stocks over a quarter unless there is plague, famine, war, terrorists, even more drought, earthquakes ( today they said the San Andreas is becoming filled with water and may cause slippage), etc. Any or several could occur, but I will place my bet and hope for the best. I was into gold stock big ( see thread from November when I visited the gold mine) but sold when I saw stocks starting to rev up after March, so I do like gold, just not right now or near future.

Jim

 

not trying to agree with you but I like silver more then gold

although I do own an ENTIRE 1 GRAM GOLD BAR!